FATF increased monitoring & high-risk jurisdictions for June 2024

On June 28th, 2024, the Financial Action Task Force (FATF) updated its lists of jurisdictions subject to increased monitoring and those under a call for action, as part of its ongoing review process during FATF plenary meetings. These updates reflect the FATF's assessments and the dynamic global, political, and economic landscapes.

Key Updates to FATF Lists:

Increased Monitoring: Jurisdictions under increased monitoring, often referred to as the "grey list," are identified as having strategic deficiencies but are not subject to mandatory application of enhanced due diligence measures. However, a risk-based approach is advised, considering detailed risk analyses provided by obliged entities. These jurisdictions have committed to addressing their deficiencies swiftly within agreed timeframes.

In the latest update, notable changes include:

• Additions: Monaco and Venezuela have been added to the grey list.

• Removals: Jamaica and Turkey have been successfully removed following improvements.

Jurisdictions under increased monitoring as of June 2024 include:

• Bulgaria, Burkina Faso, Cameroon, Croatia, Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam, Yemen.

High-Risk Jurisdictions: Jurisdictions categorized as high-risk are identified with significant strategic deficiencies in their ML/TF regimes. Entities are required to apply enhanced due diligence measures for any interactions involving these jurisdictions.

Currently listed as high-risk:

• Democratic People’s Republic of Korea (DPRK)

• Iran

• Myanmar

Additional Notes: The FATF has also continued the suspension of the Russian Federation's membership due to the ongoing geopolitical tensions in Ukraine.

Implications for Compliance: Entities subject to the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, Cyprus Law 188(I)/2007, must integrate this information into their AML strategies. This includes adjusting AML risk-scoring and enhancing due diligence during customer onboarding and ongoing monitoring processes.

Failure to adapt to these updates not only violates regulatory standards but also increases AML risk exposure, potentially leading to administrative or criminal penalties.

For organizations navigating these complexities, it's crucial to stay informed and compliant with FATF recommendations and local regulations. FATF increased monitoring & high-risk jurisdictions for June 2024

www.cjsolutionsltd.com remains committed to providing guidance and support to ensure that your operations meet all necessary compliance standards and you are well-prepared to handle these international considerations. contact us today info@cjsolutionsltd.com